FACTBOX-From trend to mainstay: AI to cement its place at the core of 2026 investment strategies
Dec 16 (Reuters) - Artificial intelligence is expected to remain the centerpiece of investment strategies, global brokerages outlined in their outlook for 2026, with the benchmark S&P 500 index .SPX on pace to post another year of gains.
"We think fears of a collapse in the AI narrative are overdone and expect economic expansion to continue for yet another year," Barclays strategists said.
Still, risks loom: inflation surprises, lofty valuations and tariff tensions could spark corrections, even as analysts bet on AI and the U.S. Federal Reserve's monetary policy easing to keep the bull market alive.
Strategists predict global economic growth to be resilient. Global GDP is expected to grow between 2.4% and 3.3%, as per estimates.
The benchmark index will climb nearly 12% to 7,490 by end-2026, marking a fourth straight year of advances if 2025 closes higher, according to a Reuters poll.
Following are forecasts from some top brokerages on economic growth and the performance of U.S. stocks in 2026:
Forecasts for stocks:
Brokerage | 2026 S&P 500 index target |
BofA Global Research | 7,100 |
Societe Generale | 7,300 |
Barclays | 7,400 |
UBS Global Research | 7,500 |
Jefferies | 7,500 |
HSBC | 7,500 |
J.P.Morgan | 7,500 |
Canaccord Genuity | 7,500 |
BNP Paribas | 7,500 |
Citigroup | 7,700 |
UBS Global Wealth Management | 7,700 |
Evercore ISI | 7,750 |
Morgan Stanley | 7,800 |
Seaport Research Partners | 7,800 |
Deutsche Bank | 8,000 |
Oppenheimer Asset Management | 8,100 |
Wells Fargo Investment Institute | 7,400-7,600 |
Real GDP Growth:
Brokerage | GLOBAL | U.S. | EURO AREA | UK |
Citigroup | 2.6% | 1.9% | 0.8% | 1.0% |
Goldman Sachs | 2.8% | 2.3% | 1.3% | 1.1% |
Morgan Stanley | 3.2% | 1.8% | 1.1% | 1.2% |
TD Securities | 2.8% | 2.0% | 0.8% | 1.0% |
Wells Fargo | 2.8% | 2.3% | 1.2% | 1.2% |
UBS Global Wealth Management | 3.1% | 1.7% | 1.1% | 1.1% |
Deutsche Bank | 3.1% | 2.4% | 1.1% | 1.2% |
HSBC | 2.4% | 1.7% | 1.0% | 1.2% |
J.P.Morgan | 2.5% | 2.0% | 1.3% | 0.9% |
BofA Global Research | 3.3% | 2.4% | 1.0% | 1.1% |
UBS Global Research | 3.1% | 1.7% | 1.1% | 1.1% |
UBS Global Research and UBS Global Wealth Management are distinct, independent divisions in UBS Group
Wells Fargo Investment Institute is a wholly owned subsidiary of Wells Fargo Bank
Brokerages' 2026 forecast for S&P 500 index target
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